IBM's Hard Drive Unit Lost $423M
Jul. 09, 2002
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NEW YORK (AP) _ International Business Machines Corp. recently sold hard-disk drive business had a pretax loss of $423 million last year, the company revealed Tuesday in a regulatory filing.
While it was well-known that the unit was losing money, IBM had not broken out the figures before. The Armonk, N.Y.-based computer giant agreed to sell the business to Hitachi Ltd. on June 4 for $2.05 billion.
According to the filing with the Securities and Exchange Commission, the losses increased throughout the year. The first-quarter loss was $27 million, $46 million in the second quarter, $118 million in the third and $232 million in the fourth.
As for the first quarter of 2002, IBM's hard-disk drive unit lost $92 million. The company plans to report second-quarter results next Wednesday.